Opportunity

YPO - 001100 Supply of Electricity and Ancillary Services

  • YPO

F02: Contract notice

Notice reference: 2022/S 000-005299

Published 25 February 2022, 1:26pm



The closing date and time has been changed to:

6 April 2022, 12:00pm

See the change notice.

Section one: Contracting authority

one.1) Name and addresses

YPO

41 Industrial Park

Wakefield

WF2 0XE

Contact

Contracts Team

Email

contracts@ypo.co.uk

Telephone

+44 1924664685

Country

United Kingdom

NUTS code

UKE45 - Wakefield

Internet address(es)

Main address

http://www.ypo.co.uk/

Buyer's address

https://procontract.due-north.com/register?ReadForm

one.2) Information about joint procurement

The contract is awarded by a central purchasing body

one.3) Communication

The procurement documents are available for unrestricted and full direct access, free of charge, at

https://procontract.due-north.com/register?ReadForm

Additional information can be obtained from the above-mentioned address

Tenders or requests to participate must be submitted electronically via

https://procontract.due-north.com/register?ReadForm

one.4) Type of the contracting authority

Body governed by public law

one.5) Main activity

General public services


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

YPO - 001100 Supply of Electricity and Ancillary Services

Reference number

001100

two.1.2) Main CPV code

  • 09310000 - Electricity

two.1.3) Type of contract

Supplies

two.1.4) Short description

YPO are looking for a Supplier to be appointed onto a Framework Agreement for the supply of electricity, as well as related ancillary services, primarily for use in the local authority sector, education sector, emergency services sector and any of YPO’s permissible users. This Framework is designed to meet the needs of both YPO and Other Contracting Authorities by establishing an agreement where the end customer will enter into an electricity supply agreement with the Supplier and the Supplier will supply electricity, as well as any ancillary services that the customer requires, direct to the end customer. Any potential tenderers must have a commercial supply licence and listed on the OFGEM approved supplier list.

two.1.5) Estimated total value

Value excluding VAT: £2,600,000,000

two.1.6) Information about lots

This contract is divided into lots: No

two.2) Description

two.2.2) Additional CPV code(s)

  • 09310000 - Electricity
  • 31682000 - Electricity supplies
  • 71314000 - Energy and related services

two.2.3) Place of performance

NUTS codes
  • UK - United Kingdom

two.2.4) Description of the procurement

The Framework Agreement shall cover the supply of Electricity, as well as the provision of related ancillary products and services. These ancillary products and services may include but are not limited to the following listed below. Please note that the Supplier must be capable and be able to deliver the ones highlighted mandatory.

• Energy Storage

• Solar- Design and Install

• Smart Cities

• Demand Side Response/ Demand Side Flexibility

• Heat Pumps

• Intelligent Metering

• Carbon Offsetting

• Feasibility Studies

• Consultancy

• Automated Meter Reading (AMR) Metering Services (Mandatory Requirement)

• Electric Vehicle Charging Points

• Meter Operator (MOP) Metering Services (Mandatory Requirement)

• Data Aggregation (DA) and Data Collection (DC) Services (Mandatory Requirement)

• Power Purchase Agreements (PPA’s) (Mandatory Requirement)

• Carbon Reduction Reporting

• Energy Management Tools

• Energy Efficiency Surveys

• Display energy certificates

• Online Energy Management Portal

Any potential tenderers must have a commercial supply licence and listed on the OFGEM approved supplier list.

two.2.5) Award criteria

Quality criterion - Name: Trading Support / Weighting: 10%

Quality criterion - Name: Social Value/Sustainability / Weighting: 20%

Quality criterion - Name: Customer Onboarding, Exiting and Billing / Weighting: 15%

Quality criterion - Name: Customer Service, Customer Transition and Online Portal / Weighting: 25%

Cost criterion - Name: Cost / Weighting: 30%

two.2.7) Duration of the contract, framework agreement or dynamic purchasing system

Start date

1 April 2023

End date

31 March 2031

This contract is subject to renewal

Yes

Description of renewals

There is a possibility that this framework will be subject to renewal after 6.5 years from the commencement date.

two.2.10) Information about variants

Variants will be accepted: No

two.2.11) Information about options

Options: Yes

Description of options

The Framework Agreement will cover the period from 1st April 2023 to 31st March 2027 with two options to extend for an additional 24 months. The first decision to extend the contract period will be taken by January 2025 and will be dependent on satisfactory completion of all aspects of the contract to date, the current market conditions for this category and YPO’s contracting structures. The maximum contract period will therefore be 8 years, from 1st April 2023 to 31st March 2031 (subject to an annual review, incorporating management fee negotiations and KPI performance).

The justification for a 4+2+2 (possible 8 years in total) length Framework, is due to the complexity of the proposed Framework Agreement, taking account of the national procurement policy around tackling climate change and given the nature of the service/product, to ensure customers can gain the maximum benefits from using the Framework without compromising the potential for open competition in the wider market.

Wholesale electricity prices are currently at the highest ever and having a longer Framework, will allow for YPO to operate a much longer term purchasing strategy without the complexities of sleeving to another provider. A longer term purchasing strategy will mitigate risk for our customers and YPO will be able to provide them with longer term budget certainty in a volatile market.

We have also considered that the majority of our customer have declared climate emergencies and have net zero targets of 2030 and beyond and the UK Government itself has a legally-binding target to reduce greenhouse gas emissions to net zero by 2050. Having a longer term partnership with an electricity Supplier in a framework format will support our customers on this journey, as one of the biggest contributors to carbon emissions is energy consumption. The collaborative approach with a Supplier for a longer period, will allow for support with reducing consumption/becoming more efficient, setting up effective power purchase agreements and potential for additional support on social value.

two.2.13) Information about European Union Funds

The procurement is related to a project and/or programme financed by European Union funds: No


Section three. Legal, economic, financial and technical information

three.1) Conditions for participation

three.1.1) Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers

List and brief description of conditions

Organisations must ensure that they are not in breach of any of the mandatory or discretionary exclusions contained in Regulation 57 of the Public Contracts Regulations 2015. Please refer to the Tender Documentation/ Online Tender located on our E-Procurement system. The web address can be found under ‘Procurement Documents’ in ‘Communication’ section in this notice.

three.1.2) Economic and financial standing

Selection criteria as stated in the procurement documents

three.1.3) Technical and professional ability

List and brief description of selection criteria

The Supplier must at all times hold a valid electricity supply licence granted by OFGEM, and any other qualification as required by legislation throughout the duration of the Framework.

three.2) Conditions related to the contract

three.2.2) Contract performance conditions

Please refer to the Framework Agreement Terms and Conditions located on our E-Procurement system. The web address can be found under Procurement Documents in ‘Communication’ Section in this notice.


Section four. Procedure

four.1) Description

four.1.1) Type of procedure

Open procedure

four.1.3) Information about a framework agreement or a dynamic purchasing system

The procurement involves the establishment of a framework agreement

Framework agreement with a single operator

In the case of framework agreements, provide justification for any duration exceeding 4 years:

The justification for a 4+2+2 (possible 8 years in total) length Framework, is due to the complexity of the proposed Framework Agreement, taking account of the national procurement policy around tackling climate change and given the nature of the service/product, to ensure customers can gain the maximum benefits from using the Framework without compromising the potential for open competition in the wider market. Wholesale electricity prices are currently at the highest ever and having a longer Framework, will allow for YPO to operate a much longer term purchasing strategy without the complexities of sleeving to another provider. A longer term purchasing strategy will mitigate risk for our customers and YPO will be able to provide them with longer term budget certainty in a volatile market. We have also considered that the majority of our customer have declared climate emergencies and have net zero targets of 2030 and beyond and the UK Government itself has a legally-binding target to reduce greenhouse gas emissions to net zero by 2050. Having a longer term partnership with an electricity Supplier in a framework format will support our customers on this journey, as one of the biggest contributors to carbon emissions is energy consumption. The collaborative approach with a Supplier for a longer period, will allow for support with reducing consumption/becoming more efficient, setting up effective power purchase agreements and potential for additional support on social value.

four.1.8) Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes

four.2) Administrative information

four.2.1) Previous publication concerning this procedure

Notice number: 2021/S 000-022871

four.2.2) Time limit for receipt of tenders or requests to participate

Originally published as:

Date

4 April 2022

Local time

12:00pm

Changed to:

Date

6 April 2022

Local time

12:00pm

See the change notice.

four.2.4) Languages in which tenders or requests to participate may be submitted

English

four.2.6) Minimum time frame during which the tenderer must maintain the tender

Duration in months: 3 (from the date stated for receipt of tender)

four.2.7) Conditions for opening of tenders

Date

4 April 2022

Local time

12:00pm


Section six. Complementary information

six.1) Information about recurrence

This is a recurrent procurement: Yes

Estimated timing for further notices to be published: There is a possibility that this framework will be subject to renewal after 6.5 years from the commencement date.

six.3) Additional information

YPO are purchasing on the behalf of other contracting authorities. Please see the below link

for details: https://www.ypo.co.uk/about/customers/permissible-users .

YPO will incorporate a standstill period at the point of notification of the award of the contract

is provided to all bidders. The standstill period will be for a minimum of 10 calendar days, and

provides time for unsuccessful tenderers to challenge the award decision before the contract is entered into. The Public Contracts Regulations 2015 provide for aggrieved parties who have been harmed or are at risk of harm by a breach of the rules to take action in the High Court (England, Wales and Northern Ireland).

six.4) Procedures for review

six.4.1) Review body

High Court of England and Wales

London

Country

United Kingdom